Ethereum, the second most popular cryptocurrency in the market today, is attracting scores of investors. The currency has distinguished itself from Bitcoin through its unique and complex blockchain.
The story behind Ethereum
At the time when Vitalik Buterin (founder of Ethereum) pitched the blockchain technology to his father Dmitry Buterin, Bitcoin was all the rage in the tech industry. Little did the father and son duo know that their blockchain system will disrupt the market after Bitcoin. They named the new crypto Ethereum.
It started while Vitalik was a student and a tech blogger and got noticed by another blogger Mihai Elisie. Mihai was 23 and lived in Poland. Vitalik and Mihai jointly founded the Bitcoin Magazine. Later on, the two joined Dr. Gavin to develop Ethereum. And 2014 the world was introduced to the most brilliant blockchain to date.
Fundamentals of Ethereum
In simplest terms, Ethereum is a gateway to all sorts of open-source (free-to-use) applications, that run on blockchain technology.
These applications enable transactions freely while being immune to any alteration due to their decentralized nature; this aspect adds a huge benefit to the technology. Especially, when the currency promises the transfer of the world’s assets into an invulnerable digital system and does not involve money directly. Note that such applications were only made possible for the first time on the Ethereum blockchain.
We may conclude that Ethereum is a blockchain that would do everything for cryptocurrency that Bitcoin did for money.
Steps to buying Ethereum
The first step towards investing in Ethereum would be to buy and install a wallet; a wallet is where you will store your Ether (short of Ethereum). There is an array of wallets that can hold Ether, whereas the official wallet can be downloaded from the company’s website; https://ethereum.org/en/.
Apart from online wallets, hardware wallets such as Ledger and Trezor are considered to be the most secure. Remember, due to its digital nature, securing your assets is paramount.
Lastly, software such as Exodus, Jaxx, and MyEtherWallet is a good way for beginners with little investments. The software is free and very safe as they are not connected to the internet, so reduces the chances of being hacked to negligible levels.
Coinbase & Binance
Once you have secured a wallet, it’s time to buy Ethereum. Like Bitcoin, Ethereum can be bought from multiple exchanges. The two that we will focus on here are Coinbase and Binance. As we speak, Coinbase is the world’s largest bitcoin broker and has Ethereum, Litecoin, and others on offer as well.
Registering on any of these exchanges will require strict verifications and authentication protocols. Read the instructions before initiating the registration process, and ensure that all required documents and identity kits are handy. Coinbase displays real-time rates, fluctuations, and future predictions; studies the patterns and buys your assets.
Note that Coinbase has added security layers; even after login it may email periodically to re-authenticate and verify.
On the other hand, Binance is a crypto-to-crypto exchange. Unlike Coinbase, which is funded through crypto, credit card, and other online payment methods, the only way to invest in Binance is through Bitcoins or other cryptocurrencies.
The registration and verification process is more or less the same for all exchanges.
On the Binance exchange go to the funds’ section, down to the Bitcoin button, and hit the deposit button. An address will appear on the screen for BTC where you can send your funds. Your purchase will be reflected within 30 minutes after the deposit has been sanctioned.
Now that you have funds on your Binance, move towards the Exchange part and select your pair. In your case ETH-BTC. You will see a counter where the ETH to BTC will be displayed, you can either put the BTC you wish to buy to see how much you will be charged. Or feed the ETC you wish to spend to see how much BTC it will procure for you.
Securing Assets
Claims aside, the digital world is always at threat of being hacked. No network is too secure. We strongly advise that as soon as you have bought your assets, move them to the secure wallet you have chosen. An offline software-based wallet is preferable if you are new to the trade.
